, 1887-08-04
A Bad Break in the San Fran.
cisco Wheat Deal.
Prices Drop and the Bulls
Slaughtered.
The Change Creates an Excit-
ment, But no Panic.


bull deal in wheat collapsed here to.
day. There have been mutterings of
trouble for several days, and the out
come was not entirely unexpected.
Top prices were reached last Monday
when bulls offered 9Th per Genital for
wheat, yesterday the market dropped
to $2.l4. This made price, and one
eight cents per pound in San Francis
co against one and one-eight cents in
Chicago, one and one.quarter in New
York and one and six-tenths in Liver
pool. The collapse of the deal was not
attended by the usual excitement
Accessions of the call board were adj
journed under resolutions adopted by
the board of directors and posted on
the door of the exchange. The rea-
son given was the desire to avert
threatened panic. This step was not
altogether unanticipated and the feel
ing was expressed by both parties who
have been strained to the
utmost during the past few
days. No failures were reported up to
II late hour this afternoon, and it is be-
leved all deals will be compromised so
as to avoid any such disaster on the
street. Two of the chief bull traders
were William Dressbach and Jno.
Rosenfeld, but the theory is accepted
that they represented other interests.
They are known to be responsible for
$4,000 tons of wheat held under various
options, for delivery during this year.
These contracts now stand at $2.15
per GENITAL. They made an offer to
settle on the following terms: To set
tie and pay at once 10 cents per GENITAL
as soon as settlers have wheat ready for
delivery and tenderit. Further to pay 30
cents per Genital which would leave the
price standing with n balance due of
$l7O. This they propose to accept
and pay for one-south in September,
O.. one-fourth in October, one fourth inNo-
vember and the balance in December.
They also propose to pay sellers in
tcrest at the rUte of per cent per an
mum on all deferred payments, to-
gether with the customary storage and
insurance charges. To secure the
margin of thirty-fve cents per ton
they propose to deposit ample security
in the form of wheat with the board of
directors. In other words they asked
sellers to carry wheat in their interest
and pay them for dong so. The total
amount of wheat "long" they have
been shouldering is variously COM
puted, but as evidence of the magni-
tude of the deal it is stated
that it has required $19,00O,OO0
to carry grain already at Liverpool
and on the way, together with great
quantities in warehouses in this state.
Local banks pursued conservative
n Iet4
fused to interfere, content to loan
their customers money at the regular
rates. Collateral put up by the ring
ior advances has been mostly certif-
Gates of wheat on band and the inter-
esting question of the future will be
the ownership of one-half the hypothe-
Gated stock. The action taken by the
board OF directors in stopping all
board sessions is deemed very remarka-
BILE, but that it averted panic is con-
ceded and Dresbach's proposition was
accepted this afternoon and the virtual
result is that spectators and
brokers shorts included have
agreed to keep their hands
of the market for time being. The
bulls -and bears backed down The
money squeezed out OF shorts on mar
gins will be refunded and they will
lose nothing. On the other hand the
rings wheat has substantially cost over
Sl.65, and they will lose the difference
between that and the actual market
price, and the fullfillment of Grants
scheme to corner the market. Dress
bach had shorts SO badly scared that
they were willing to get out witho ut
making anything, making the out
come one of the most remarkable on
record. Many of the shorts came out
ahead on settlement, but apart from
loss inflicted on the "bull clique"
proper, no firm losses are mentioned
in excess of sixty thousand dollars.
The sessions of the call board have
been postponed indefinitely, and the
actual market price of wheat cannot
be determined for several days, al.
though the nominal figure is $1.7O.
Questions and Answers Reg arding Cana
dian Fisheries.
HALIFAX, August 2.-Capt. P. A.
Scott has received from Admiral Luce,
OF the United States navy now here on
the flag ship Richmond, six questions
on points in connection with the
present condition of fisheries affairs.
The questions are in writing and have
been answered in the same manner,
the whole being signed by Capt. Scott
as commander of the Canadian fishery
protection service. Questions and re-
plies are as follows.
First-Are there any Canadian